Mid-Morning Market Update: Markets Open Lower; Best Buy Cuts FY23 Forecast

U.S. stocks traded lower this morning, with the Dow Jones dropping more than 100 points on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.38% to 31,760.22 while the NASDAQ fell 2.47% to 11,250.05. The S&P also fell, dropping, 1.20% to 3,926.12.

Also check this: Executives Buy Around $1.6M Of 4 Penny Stocks

Leading and Lagging Sectors

Consumer staples shares rose by 0.6% on Tuesday. Meanwhile, top gainers in the sector included NaturalShrimp Incorporated SHMP, up 6% and Bridgford Foods Corporation BRID up 2%.

In trading on Tuesday, communication services shares dipped 4.6%.

Top Headline

Best Buy Co., Inc. BBY reported mixed results for its first quarter and lowered guidance for FY23.

Best Buy posted quarterly adjusted earnings of $1.57 per share, missing analysts’ estimates of $1.63 per share. The company’s sales came in at $10.65 billion, versus expectations of $10.43 billion.

Best Buy lowered FY23 adjusted EPS guidance from $8.85-$9.15 to $8.40-$9.00. The company also reduced sales guidance from $49.3 billion-$50.8 billion to $48.3 billion-$49.9 billion.


Equities Trading UP

America's Car-Mart, Inc. CRMT shares shot up 25% to $95.40 after reporting better-than-expected Q4 results.

Shares of Allarity Therapeutics, Inc. ALLR got a boost, shooting 14% to $2.72.

China Liberal Education Holdings Limited CLEU shares were also up, gaining 10% to $2.34.

Equities Trading DOWN

MSP Recovery Inc. MSPR shares tumbled 57% to $4.64. MSP Recovery’s Class A Common Stock and warrants started trading today.

Shares of Snap Inc. SNAP were down 39% to $13.61. The parent company of Snapchat filed a form 8-K with the U.S. Securities and Exchange Commission to lower its previously-issued guidance for the second quarter. When Snap originally issued its guidance for the quarter on April 21, the company forecast second-quarter revenues to come in 20% to 25% above the same period the year prior.

BigBear.ai Holdings, Inc. BBAI was down, falling 29% to $7.16. BigBear.ai Holdings recently posted a Q1 loss of $0.14 per share.

Also check out: 4 Stocks Under $3 Insiders Are Aggressively Buying


In commodity news, oil traded up 0.8% to $111.14, while gold traded up 0.9% to $1,864.30.

Silver traded up 2% to $22.155 on Tuesday while copper fell 1.1% to $4.30.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.7%, London’s FTSE 100 rose 0.1% and Spain’s IBEX 35 Index rose 0.1%. The German DAX dropped 1.1%, French CAC 40 dipped 1.2% and Italy’s FTSE MIB Index fell 0.6%.

The S&P Global Flash Eurozone services PMI declined to 56.3 in May from 57.7 in April, while manufacturing PMI slipped to 54.4 from 55.5. UK’s services PMI fell to 51.8 in May from 58.9 in April, while manufacturing PMI dropped to a 16-month low of 54.6 in May.

French composite PMI slipped to 57.1 in May from April's 51-month high of 57.6, while German composite PMI rose to 54.6 from 54.3.


The S&P Global US services PMI declined to 53.5 in May from 55.6 in the earlier month, while manufacturing PMI dropped to 57.5 from 59.2.

US new home sales dropped 16.6% to an annual rate of 591,000 in April.

The Richmond Fed manufacturing index dipped to -9 in May from 14 in the prior month.

Federal Reserve Chair Jerome Powell will speak at 12:20 p.m. ET.

The Treasury is set to auction 2-year notes at 1:00 p.m. ET.

Data on money supply for April will be released at 1:00 p.m. ET.

Check out this: Zoom Video And 2 Other Stocks Insiders Are Selling

COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 85,113,960 cases with around 1,029,120 deaths. India confirmed a total of at least 43,140,060 cases and 524,490 deaths, while Brazil reported over 30,803,990 COVID-19 cases with 665,720 deaths. In total, there were at least 528,395,430 cases of COVID-19 worldwide with more than 6,302,050 deaths.

Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsPenny StocksEurozoneCommoditiesSmall CapGlobalIntraday UpdateMarketsMid-Morning Market Update